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Forming a multi-member LLC
We are starting a 9-member LLC to buy real estate. One of the potential members has a substantial lien against him for failing to have auto insurance during an accident. He may even file for bankruptcy. Will his situation affect our LLC and be a liability?
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Todd Dexheimer
#2 Multi-Family and Apartment Investing Contributor
#2 Multi-Family and Apartment Investing Contributor
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- St. Paul, MN
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Todd Dexheimer#2 Multi-Family and Apartment Investing Contributor
#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
No it should not affect your LLC, but it could affect your ability to get a loan using the LLC.
9 member LLC sounds like a nightmare. Why so many partners? Make sure you have everyone's roles clearly defined in the operating agreement. Better yet, shed half or more of the members